Acquiring Minds How to Buy a Ski Resort (at Age 22)
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Jul 13, 2021 In this episode, Rick Schmitz, who at just 22 turned a struggling ski resort into a thriving business, shares his incredible journey. He recounts negotiating the price down from $1 million to $625,000 despite facing countless rejections from banks. Rick emphasizes the significance of a strong business plan and creative financing. He discusses the sacrifices made to grow his resorts and the importance of community connections. With humor and insight, Rick outlines the unique challenges and rewards of acquiring ski resorts in the Midwest.
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Piece Together Financing Sources
- Patch financing together from multiple sources when banks hesitate on risky deals.
- Use family loans, state tourism loans, county revolving funds, and multiple banks to fill funding gaps.
Asset Valuation Helps Risky Buys
- Asset sales can help when real property isn't included and books show losses.
- Unique equipment appraised high can support lending even when operations underperform.
Reinvest Early, Pay Yourself Little
- Reinvest earnings into the business early and accept a minimal owner draw to fund growth.
- Rick paid himself almost nothing for a decade to reinvest every penny into improvements.